Care home crisis leaves self-funders footing £1.3bn bill

The healthcare market intelligence provider LaingBuisson has found that residential care homes are currently charging fees of between £590 and £648 per week, despite English councils contributing only £486 per week towards residential care in 2016-17.

The analysts have warned that this “tax” equates to around £8,000 a year per self-funding resident and will only increase from April as care home owners look to pursue a rise in costs.

“The entire care home sector for older people is being kept afloat through cross subsidies from the 40% of care home residents who pay privately,” said William Laing, founder of LaingBuisson.

“The £1.3bn can equally be viewed as a hidden ‘care tax’ that government and councils are content to see private payers contributing to keep mixed funding homes in business.”

The findings have been met with concern by local authorities and social care directors alike as the Association of Directors of Adult Social Services (ADASS) said that reductions in council funding and the rising minimum wage are making it harder for providers to recruit staff.

“The historic underfunding of adult social care is impacting on the cost and quality of care and access to it,” said Cllr Izzi Seccombe, chairman of the LGA’s Community Wellbeing Board.

“The consequences for the provider market are particularly acute and the gap between what providers say they need and what councils are able to afford is now at breaking point.”

Cllr Seccombe repeated the LGA’s warning that the shortfall risks the creation of a two-tiered system between those rich enough to choose and pay for their own care and those reliant on “increasingly overstretched” council-funded care which will not sufficiently meet their needs.

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Devolution, restructuring and widespread service reform: from a journalist’s perspective, it’s never been a more exciting time to report on the public sector. That’s why I could not be more thrilled to be taking over the reins at PSE at this key juncture.
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